Graham's View
Graham really didn’t care about the kind of business he was buying, in his world every business had a price at which it was a bargain.
Graham was focused on finding companies trading at less than half of what they held in cash. He called it “buying a dollar for 50 cents.”
Graham had other standards as well such as never paying more than 10 times company’s earnings and selling the stock if it was up 50%. if it didn’t go up within two years, he would sell it anyway.
36
126 reads
Similar ideas to Graham's View
For the Defensive Investor
Once you have your capital, invest 50% of it into bonds or an index fund (depending on market conditions) while the other 50% to be invested on individual stocks.
However, when investing on individual stocks make sure of the ff:
- avoid small cap stocks unless they're diversif...
STALWARTS
• These are big companies that aren’t likely to go out of business. The key issue is price, and the p/e ratio will tell you whether you are paying too much.
• Check for possible diworseifications that may reduce earnings in the future.
• Check the company’s long-term growth rate, and ...
Read & Learn
20x Faster
without
deepstash
with
deepstash
with
deepstash
Personalized microlearning
—
100+ Learning Journeys
—
Access to 200,000+ ideas
—
Access to the mobile app
—
Unlimited idea saving
—
—
Unlimited history
—
—
Unlimited listening to ideas
—
—
Downloading & offline access
—
—
Supercharge your mind with one idea per day
Enter your email and spend 1 minute every day to learn something new.
I agree to receive email updates